Notable ETF flows - TECL, CDNS, MSI, ADSK

September 18, 2025 — 12:25 PM EDT

I just discovered a rather interesting phenomenon while tracking ETF fluctuations over the past week. In particular, the Direxion Daily Technology Bull 3X Shares (TECL) has seen an outflow of approximately $105.9 million - equivalent to a decrease of 2.8% compared to the previous week ( from 34,250,000 to 33,300,000 shares).

Among the major components of TECL, today Cadence Design Systems (CDNS) increased by about 4.2%, Motorola Solutions (MSI) rose slightly by 0.1%, and Autodesk (ADSK) increased by about 1.6%.

Looking at the price performance chart of TECL over the past year compared to the 200-day moving average, I see that the lowest point in the 52-week range of TECL is $32.5216 per share, while the highest point is $117.13 - close to the last trading level of $117.11. Comparing the most recent stock price to the 200-day moving average can be a useful analysis technique.

I see that ETFs trade like stocks, but instead of “shares”, investors are actually buying and selling “units”. These “units” can be traded back and forth like stocks, but they can also be created or canceled to meet investor demand. Each week we should monitor the change in the number of shares outstanding to detect ETFs with notable inflows (many new units created) or outflows (many old units canceled).

The creation of new units will mean that the underlying assets of the ETF need to be purchased, while the cancellation of units involves selling the underlying assets. Therefore, large cash flows can also affect individual components in the ETF.

I think this phenomenon is noteworthy because TECL is a high-leverage ETF (3X) in the technology sector. With money flowing out of this fund, could this be a sign that investors are losing faith in the upward trend of tech stocks? Or is it simply a portfolio rebalancing move? I will continue to monitor this situation.